Scribd
Upload
15 views4 pages

DBB2104 - Financial Management

Assignment

Uploaded by

Christina Vm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
15 views4 pages

DBB2104 - Financial Management

Assignment

Uploaded by

Christina Vm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

SESSION MARCH 2023

PROGRAM BACHELOR OF BUSINESS ADMINISTRATION (BBA)


SEMESTER III
COURSE CODE & NAME DBB2104 – FINANCIAL MANAGEMENT
CREDITS 4
NUMBER OF ASSIGNMENTS & 02
MARKS 30 Marks each

Assignment Set – 1

1. Explain the functions of a financial manager in any organization.

Ans 1.

A finance manager is a person who is responsible for carrying out the functions of a finance
department.

The main functions of finance managers

Raising of Funds:

This is a very important function of the finance manager. He has to plan for raising funds as
required. There are two types of finances: one is debt and the other is equity. To raise the first

Its Half solved only

Buy Complete assignment from us


Price – 190/ assignment

MUJ Manipal University Complete


SolvedAssignments session March 2023
buy cheap assignment help online from us easily
we are here to help you with the best and cheap help
Contact No – 8791514139 (WhatsApp)
OR
Mail us- [email protected]
Our website - www.assignmentsupport.in

2. Calculate the present value of the following cash flows assuming a discount rate of 10% per
annum.

Year Cash flows [₹]

1 10000

2 20000

3 30000

4 40000

5 50000

Ans 2.

The present value (PV) of future cash flows can be calculated using the formula:

PV = CF / (1 + r)^n

where:

 PV is the present value

 CF is the cash flow in the future

 r is the discount rate

 n is the number of periods


3. Explain the significance of the concept of cost of capital. Discuss different component of
cost of capital with example.

Ans 3.

Significance of cost of capital

The concept of cost of capital is used frequently in taking financial decisions such as investment,
financing, credit decisions etc. Let us understand the significance for each of them.

1. Investment Decisions: When a firm has to evaluate an investment opportunity it uses the cost of
capital for discount the cash flows expected from the project over its life time. Even if it uses IRR (

Assignment Set – 2

1. What are the sources of finance? Discuss the short term and long term sources of
finance for the firm.

Ans 1.

Sources of finance

Finance is the lifeblood of business. Firms require financial resources to carry out their
activities and achieve their objectives, such as buying assets, producing goods, paying
employees, and expanding operations. There are various sources of finance that can be
divided into two main categories: short-term and long-term.

Short-Term Sources of Finance

2. The details regarding three companies are given below:

X Ltd Y Ltd Z Ltd.

r = 12% r = 8% r = 10%
Ke = 10 % Ke = 10 % Ke = 10 %

E = Rs. 100 E = Rs. 100 E = Rs. 100

Compute the value of an equity share of each of these companies applying Walter’s
formula when the dividend pay-out ratio is (a) 0%, (b) 20%, (c) 40%,

Ans 2.
The Walter's Model is a mathematical model which calculates the value of a share based on
dividend, retained earnings and the rate of return. The formula for Walter's model is:

P = (D + (r / Ke) * (E - D)) / Ke

where:

 P is the price of the share,

 D is the dividend per share,

3. What is Working capital management? Discuss various factors that affect working
capital requirement?

Ans 3.

Working capital management

WC typically means the firm’s holding of current or short-term assets such as cash,
receivables, inventory and marketable securities. These items are also referred to as
circulating capital. Corporate executives devote considerable amount of attention to the
management of WC.

You might also like